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It distributes pipes, valves, pumps, and other gear that oil, gas, and industrial companies need to keep their operations running.
DNOW Inc. is a middleman for the energy and industrial world. It buys pipes, valves, pumps, fittings, and related gear from hundreds of manufacturers and keeps them in stock, then sells them to oil and gas drillers, refineries, chemical plants, and general factories that need parts fast to avoid downtime. It serves customers mainly in the United States and Canada, and its headquarters in Houston puts it right in the middle of the oil patch. The company makes money on the spread between what it pays suppliers and what it charges customers, plus services like pipe threading and valve repair that add higher margins. Think of it as the Home Depot for industrial plumbing, except the buyers are big energy companies, not weekend warriors.
The business splits into two main segments: U.S. and Canada, which covers the oilfield and industrial customers in North America, and International, which serves markets in Europe, Latin America, the Middle East, and Asia-Pacific. The U.S. and Canada segment brings in the lion's share of revenue, often around 80 percent, and it rises and falls with drilling activity. When oil prices are strong and rigs are spinning, demand for pipes and valves jumps. When drilling slows, DNOW's sales slow too. The International segment is smaller but gives the company exposure to offshore and state-owned oil projects that can be steadier.
DNOW was spun off from National Oilwell Varco in 2014 so it could focus purely on distribution rather than manufacturing. Since then it has bought smaller distributors to expand its product range and geographic reach, including a 2024 deal for Trojan Rentals that added pump rentals to its offerings. The company generates decent free cash flow and uses it to fund acquisitions, pay down debt, and occasionally buy back shares. Because it sits between manufacturers and end users, its fortunes track the health of the energy and industrial economy more than any single product it sells.
Saved answer · last researched 11 Oct 2026